(Transcript from SBS World News Radio)
Greece has reached an agreement with its creditors on a third bailout deal.
It came after marathon talks on the country's financial future in Belguim.
Santilla Chingaipe has the details.
(Click on the audio tab above to hear the full report)
Prior to the emergency talks in Brussels, Greece was issued an ultimatum.
Accept the harsh reforms or exit the European single currency.
European Union President Donald Tusk says the agreement for a so-called European Stability Mechanism was unanimous.
"After 17 hours of negotiations we have finally reached it. Someone can say that we have an "agreekment". Leaders have agreed in principle that they are ready to start negotiations on an ESM program, which in other words means continued support for Greece."
Under the deal, the EU has given conditional agreement for Greece to receive a possible 86 billion euros over three years.
Of that, 50 billion euros would go to manage state assets in a special fund, with most of the rest being used to recapitalise Greek banks.
Greece had to impose capital controls two weeks ago to stop a run on its banks.
If the summit had failed, Greek banks would have been on the brink of collapse, and it also faced the prospect of having to exit the euro and returning to its own currency.
Eurogroup President Jeroen Dijsselbloem says recapitalisation of the banking system is crucial.
"One of the big issues that we will have to deal with once the program is agreed, is the problems in the banks and the fund will contribute also to the repayment of those capitalisation needs and finally on top of that once the 25, approximately 25 billion that is needed for recapitalisation is repaid. The remaining funds coming from the fund will be used for 50 percent to bring down debt even more and 50 percent can be invested in Greece by the Greek government. So that is one of the key elements to work on, both on debt sustainability and to let growth return to Greece and investor confidence return to Greece."
German Chancellor Angela Merkel has welcomed the deal.
But she says the Greek parliament will have to accept many reforms as part of the package.
(Translated) "Essential changes have to be made - for example a complete overhaul of the pension system, a reform of the product markets on privatisation and changes in the labour market. And all of that is stated very clearly in the text."
Head of the International Monetary Fund, Christine Lagarde, says it's a significant step for Greece to regain trust with its lenders.
"It's been a laborious night but I think it's a good step to rebuild confidence and there will be many more steps I'm sure that will only be demonstrated by the implementation of what has been agreed now."
The package has to be approved by parliaments in all Eurozone states, including Greece, before coming into effect.
The deal is Greece's third in five years.
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